Whether you’re thinking about buying your first home or considering putting your house on the market, it’s important to understand the current real estate climate. The terms “buyer’s market” and “seller’s market” get used a lot, but what do they actually mean—and how do they impact your plans?
A buyer’s market occurs when there are more homes for sale than there are buyers. This gives buyers the advantage, as sellers may need to lower prices or offer incentives to compete for attention. In a buyer’s market, homes often stay on the market longer, and buyers have more room to negotiate on price, closing costs, and contingencies.
On the flip side, a seller’s market happens when demand outpaces supply. With fewer homes available, buyers often find themselves in bidding wars, and homes tend to sell quickly—sometimes above asking price. In this type of market, sellers typically have the upper hand and can be more selective with offers.
But how do you know which market we’re in? One of the key indicators is months of inventory, which measures how long it would take to sell all current listings at the current pace of sales. Generally, less than 4–5 months of inventory signals a seller’s market, while more than 6 months indicates a buyer’s market. Other factors include average days on market, sale-to-list price ratios, and current mortgage interest rates.
It’s also worth noting that real estate is local—and sometimes even hyperlocal. What’s true in one neighborhood might not apply just a few miles away. That’s why it’s essential to work with real professionals like the team at Yosha-Snyder Group who can provide up-to-date insights tailored to your specific area.
Whether you’re a buyer looking for the best opportunity to find your dream home or a seller aiming to maximize your return, knowing what kind of market you’re entering is the first step to making a smart move. And know this: predicting the market is tough–even for the experts.Not sure where the market stands right now? Reach out to the YSG team! We’ll help you understand local trends and what they mean for your real estate goals. From neighborhood-specific data to expert negotiation strategies, we’ve got the tools and experience to guide you through any type of market.